I have heared about somthing called "put options" that some stock traders use in the stock market. They profit when the stock tanks. I never knew that such a thing existed.I can see how this kind of thing can be used by insider traders or people who control the media, and susequently has the ability to manipulate stocks. Basically, big investors make money on the expense of the little guys, and they get away with it. In my opinion this makes the stock market very hard to read, and totally unpredictable?How popular is this method of "trading". How can someone detect insider trading before stock carshes?

If you own an option to buy or sell a stock, you can exercise that option any time on or before the expiration date. This allows you to take possession or to sell the stock at the fixed price of the option regardless of the current market price of the stock. For example, if you believe a stock is going to rise but don’t want to take a chance that it won’t, you could buy a call option near the current market price. If the stock climbed significantly before the expiration of the option, you could exercise the option to buy the stock at the lower price. You then can hold on to the stock with a built in gain or sell it and pocket the profit, less the cost of the option, commissions and taxes. The same technique would work with a put option or the right to sell at a fixed price for a stock you though was going to fall in price.

On some stock research sites they have data such as insider where it states sell or or put options by board or family members. You can buy the same thing they can but often the market will come almost to the point of being profitable then tke an abrupt turn. trading options isn't for the faint of heart.